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Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a military surplus shop.

Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a military surplus shop.

This article will discuss the primary insurance coverage for military surplus shops, general liability insurance, as well as additional policies that are appropriate for this industry.

Military Surplus Stores Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: An employee’s hand slips while retrieving a heavy box from a high shelf, and the box drops on a customer’s foot. General liability insurance can assist you in covering the costs of the customer’s injuries.

Example 2: An employee makes a mistake in writing down the dimensions while fitting a client for a custom-made work jacket. If the article of clothing causes financial loss or injuries on the work, general liability insurance may assist pay the expenses.

Example 3: An employee is stocking shelves in the rear room and fails to notice a customer dragging dirt and wet inside the business from outside. The following client falls and breaks their ankle. If they need medical care, general liability will most likely assist pay for it.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Military surplus retailers in the United States typically pay between $400 and $700 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Military Surplus Stores

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all military surplus businesses should have are listed below.

Insurance for Commercial Property

Your property is the foundation of your company. Commercial property insurance will cover the expenses of repair and restoration if it is damaged in any manner. It will also cover the contents of your property, which means it may assist you in repairing or replacing the structure, grounds, and goods of your shop. This insurance is often provided for theft, vandalism, and severe weather.

Insurance for Business Interruption

If your military surplus shop has to shut for a lengthy period of time due to a natural catastrophe or serious vandalism, business interruption insurance can assist compensate any lost revenue. If you own an old building or reside in a location prone to bad weather, this insurance might be vital to keeping your company solvent if you have to shut for many weeks at a time.

Insurance for Workers’ Compensation

Workers compensation insurance protects your workers if they get hurt on the job. If your workers are subjected to extremely rigorous labour, you may wish to acquire coverage in excess of the legal minimum.

Insurance for Product Liability

This kind of insurance will shield you from any faulty items you sell. If any of your survival kit fails in an emergency circumstance, you might face a lawsuit. This insurance will provide you extra protection so that you can defend your company in court or reach a settlement with the consumer or their family.

Insurance for Professional Liability

This coverage is available to you if your workers are careless or make an error on the job. For example, if they fail to advise a consumer of critical information about the survival items they’re purchasing, this insurance may assist pay the costs of a tort lawsuit.

Coverage Options Available to Military Surplus Stores

In addition to the insurance listed above, your military surplus business may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Liability Insurance for Businesses

Commercial umbrella insurance is an extension of general liability coverage that provides owners with extra cash if a litigation or claim lasts longer than intended.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.